Business
Velo was a leading provider of fleet management services to UK mid-market customers.
In 2003 the business had a turnover of £24 million and a fleet of around 11,500 cars.
Market
We identified outsourced fleet management as a long-term growth market driven by the business’s demand to reduce risk, improve efficiencies and drive productivity in all areas of operations, particularly their vehicle fleet.
Strategy
We were approached by the managers of VELO to invest in a management buy-out of the business, providing both capital and expertise. Our strategy was to build a larger provider of service-led fleet management services by:
- Investing in company infrastructure for scaleability and best-in-class customer reporting
- Extending the product and service offerings
- Consolidating the market through targeted add-on acquisitions
Outcomes
After Lyceum Capital invested in the business, its operations, service and product offerings, Velo was able to attract more blue chip customers.
Velo merged with Leasedrive in late 2006. Profits more than tripled from £1.2 million in 2003 to £5.3 million in 2007 and the number of vehicles under management grew to more than 17,500.
Leasedrive Velo was sold to Lloyds Development Capital in September 2008.